American Institute of Certified Planners (AICP) Practice Exam

The correct answer is Cost Benefit Analysis. This type of analysis evaluates the overall economic feasibility of a project by comparing the total expected costs against the total expected benefits, which are often adjusted for inflation and service growth over time. By taking into account future values, it allows planners to assess projects not only in terms of immediate costs and benefits but also in relation to how these values will change in the future, impacting decision-making and resource allocation.

In contrast, Present Value Analysis focuses on discounting future values to their present equivalents, which does not directly assess future growth or inflation. Fiscal Impact Analysis generally examines the effects of public policies on local government finances, looking at costs and revenues stemming from a given decision, but does not specifically quantify future value in the way that a cost-benefit analysis would. Revenue Estimation aims to determine future revenue streams but typically does not incorporate a holistic evaluation of both costs and benefits in relation to inflation and services, which is central to cost-benefit analysis.